Question to the HM Treasury:

To ask His Majesty's Government what plans they have to regulate identity tracing agencies in relation to the recovery of debt.

The Government wants to see fair treatment of individuals in problem debt, and there is a range of work underway across government and regulators to promote responsible practices for debt recovery.

The Financial Conduct Authority (FCA) regulates the collection of debt by lenders and certain debt collection agencies arising under credit agreements, consumer hire agreements and peer-to-peer loans. The FCA sets clear expectations for firms undertaking the collection of these debts, including the expectation for firms to establish the correct identity, where this is disputed.

On 18 March 2024 the UK Regulators Network (UKRN), including the FCA, Ofgem, Ofwat and Ofcom, published joint guidance which sets out their expectations for firms’ debt collection practices across their respective sectors. This is to ensure that firms support customers in debt and that firms’ collection practices are not causing harm to customers.